The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) announced on Wednesday that it raised the benchmark Repo Rate by 25 basis points (bps) to 5.50% from 5.25% following the conclusion of the October monetary policy meeting.

The decision came in line with the market expectations.

Comments from RBI Governor Sanjay Malhotra

Global growth remains resilient but projected to slow.

Sudden re-escalation of west asia conflict, consequent hardening of global crude prices soured global financial sentiments.

Global inflation projected to increase sharply.

Global financial markets sentiment nervous, fragile.

MPC hikes key repo rate by 25 bps.

MPC vote on repo rate decision unanimous.

MPCchanges policy stance to ‘calibrated tightening’ from ‘neutral.

USD/INR reaction to the RBI interest rate decision

The Indian Rupee (INR) catches fresh bid in an immediate reaction to the RBI interest rate decision. The USD/INR pair currently trades at 96.35, down 0.04% on the day.